Finding bargains in this beast of a bull market can be tricky, Jim Cramer told his Mad Money viewers Monday. Many times, the opportunities come and go in the blink of an eye, Cramer said, but if you're ready and you've done your homework, there are indeed big gains to be had.
Take Netflix (NFLX) , which despite its many doubters, once again crushed the estimates. The same with Schlumberger (SLB) , which saw momentary weakness today as traders focused on a tough first quarter before realizing the strength coming in the second and third quarters. Shares of Schlumberger, after that slight dip, ended up 6.4% on the day.
Cramer was pounding the table on Goldman Sachs (GS) last week, saying that despite weakness in its trading business, this company has a long history of reinventing itself. Shares of Goldman still trade for less than 11 times earnings.
Cramer also highlighted Wynn Resorts (WYNN) , another recommendation from last week. Shares of Wynn rose 8.6% today after strong earnings will certainly force analysts to raise their estimates for the company.
It's not always easy to see these opportunities, Cramer admitted, but they are out there if you've done the homework and are ready to pounce when the weakness occurs.
Cramer and the AAP team say notable gainers in the portfolio during today's session were Allergan (AGN) and the energy stocks. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
What's Working in Financials, Tech and Healthcare
What's working in the stock market now is very different than what was working a year ago, Cramer told viewers. In fact, many of the market's biggest changes aren't even being noticed by many investors, which is why Cramer highlighted the biggest shifts he's seen.
The first big shift in what's working are the financials. For years, investors fled from the financials, and for good reason. Only the "faux" financials -- payment processors like Visa (V) for example -- were even considered investable by many. But with rising interest rates, burgeoning loan growth, deregulation and a shortage of shares to buy (thanks to big buyback programs), the banks are back in a big way.
Next on the list of what's working was the broader tech sector. The FANG stocks of Facebook (FB) , Amazon.com (AMZN) , Netflix (NFLX) and Google parent Alphabet (GOOGL) have been roaring for years, but now the semiconductor makers and equipment makers are rallying, as are the cybersecurity stocks and cloud names. The secular trends of mobile, cloud, and the Internet of things are big enough to propel them all.
Finally there's healthcare, an industry left for dead after the election. But once Obamacare repeals failed in Congress, all of the drug makers and HMOs came roaring back with a vengeance. Cramer said UnitedHealth Group (UNH) still remains his favorite in the group.
Surprise: Retailers and More
Continuing with his roundup of the shifts in what's currently working in the stock market, Cramer highlighted the market's biggest surprise, the retailers. Just a few months ago, retail was practically abandoned in the wake of Amazon.com (AMZN) , but now retailers are fighting back, making Walmart (WMT) , Target (TGT) and others investable again.
What else is working? Cramer's list included the experiential economy, with airlines, hotels, cruises and RVs all in demand. There's also a bull market in oil and gas, with an expansion in the Permian Basin raising the likes of Halliburton (HAL) , Schlumberger and machinery stocks like Caterpillar (CAT) .
Finally, Cramer added the defense stocks and those supporting an expanding workforce: think Automatic Data (ADP) and uniform supplier Cintas (CTAS) , to his list as they too are in bull market "beast mode."
Off the Tape with Daymond John
In his "Off The Tape" segment, Cramer sat down with Daymond John, entrepreneur, one of the hosts of ABC's Shark Tank, and the author of the new book, Rise and Grind.
Grind stands for "get on it", repeat, insist, navigate, and the three D's of drive, desire and discipline. John explained that he studied 15 highly successful people and discovered how they lived their days so he could, too. What he discovered is that all of these people took care of their health and happiness first thing in the morning, before turning to the needs of others. They also surrounded themselves with like-minded people and had the discipline to keep themselves on track no matter what life threw at them.
Cramer called the book inspirational for anyone who wants to be more productive and get more done in their daily lives.
Over on Real Money, Cramer says of this market, you blink and you miss it. Get more of his insights with a free trial subscription to Real Money.
In his "No-Huddle Offense" segment, Cramer said that normally in a raging bull market, we'd see a flood of new IPOs taking advantage of the strength. But not so this time. The reason? It's because many of the most recent IPOs have been absolutely horrendous.
Case in point: the recent IPO of home security provider ADT (ADT) , which had hoped to sell 111 million shares between $17 and $19 a share. In reality, the company was only able to sell 105 million shares at just $14. Since the IPO, shares have broken down, losing 7.4% today alone. The automated home is here, Cramer proclaimed, and old school home security is vulnerable.
Then there's Blue Apron (APRN) , which has fallen more than 72% since its IPO in June. It turns out there's nothing proprietary about pre-planned meal delivery.
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